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|User Info||The Tide Is Turning.....; entered at 2012-05-14 15:25:35|
Registered: 2009-03-23 pure Liquid pleasure
unless it is accompanied by full and complete disclosure of everything related to the banks' finances.
We should be demanding this but can’t get their under the current system because of FDIC insurance. This single change would act as wake-up call for people who conduct business with the TBTF. Depositors would be responsible for their decisions (which don’t matter today) and be able to hold bankers accountable to provide full disclosure of finances prior to committing any money.
It makes banking the equivalent of a public utility for those who need only the checking/savings function of banks.
Yes, it should be a public utility for the far majority. If you remove the FDIC insurance in theory there would be demand for banking institutions which ONLY conduct checking / savings functions as people would seek a “safe” place to park their dollars. This is not bad, it’s good.
The problem is that bank managers get their bonuses based on taking risk.
**** them. The bubble has to pop and their standard of living has to revert to mean.
If you allow the counterfeiting then the so-called "diligence" is impossible because those frauds will be concealed and used to strip depositors of every nickel they have.
Wouldn’t the reinstatement of Glass-Stegall significantly curtail the amount of counterfeiting?
If FDIC is removed and we get to a point and have a series of banks which are “public utility”, we starve the beast. This is accomplished because who would want the risk of doing business with those institutions which pose a systemic risk. What would JPM, Citi, or BOA look like if 70% of their depositors jumped ship?